4.94

Guidelines/ Monitoring for import of precious metal by the Nominated Agencies

The guidelines on import of precious metal by the nominated agencies and monitoring are as under:

(a) Regional Authority competent to issue/renew Nominated Agency Certificate are given below:
 

(i) Four Star Export House (status on the basis of exports made only of Gems & Jewellery Sector items excluding export performance from SEZ/EOU units, if any) and Five Star Export House (excluding export performance of Gems and Jewellery items from SEZ/EOU units, if any) may apply to the concerned Regional Authority online in ANF 4-I for issue of Nominated Agency Certificate. Applicant shall upload a self-attested copy of the valid Status Holder Certificate issued under FTP 2015-2020.

(ii) On the date of application for renewal of Nominated Agency Certificate, the Status Certificate must be valid for next financial year also. Secondly, applicant should also be eligible to qualify to be recognized as Four Star Export House (based on the export of gems and jewellery sector items excluding export performance from SEZ/EOU units, if any) / Five Star Export House(excluding export performance of Gems and Jewellery items from SEZ/EOU units, if any) on the date of application. In other words, Regional Authority shall reassess the eligibility of status holder based on export performance before issuing / renewing the Nominated Agency Certificate.

(Above a) (i) & (ii)  has been amended vide PN. NO.37/2016, DT. 04/10/2016)

[OLD- (i) Four Star Export House (status on the basis of exports made only of Gems & Jewellery Sector items) and Five Star Export House may apply to the concerned Regional Authority online in ANF 4-I for issue of Nominated Agency Certificate. Applicant shall upload a self-attested copy of the valid Status Holder Certificate issued under FTP 2015-2020.

(ii) On the date of application for renewal of Nominated Agency Certificate, the Status Certificate must be valid for next financial year also. Secondly, applicant should also be eligible to qualify to be recognized as Four Star Export House (based on the export of gems and jewellery sector items) / Five Star Export House on the date of application. In other words, Regional Authority shall reassess the eligibility of status holder based on export performance before issuing / renewing the Nominated Agency Certificate. ]

(iii) Regional Authority after scrutiny of details given by the applicant, may grant Nominated Agency Certificate to the eligible applicant as per format given in Appendix 4N of Hand Book of Procedures. The Nominated Agency Certificate / Renewal of Nominated Agency Certificate shall be issued by the Head of Office.

(iv) The existing Nominated Agency Certificate issued under FTP (2009-2014) shall be valid upto 31 st March 2015. Thereafter, Nominated Agency Certificate issued under FTP 2015-2020 shall be valid for a period of one year from the date of issue.

(b) Following guidelines for monitoring the import of precious metal and its distribution and / or own use by the Nominated Agencies will be followed, (other than the Banks nominated by RBI for this purpose):

(i) Every Nominated Agency is required to maintain records of imports of precious metal (both quantity and value) and its distribution for the purpose of exports of value added product as well as for the purpose of domestic consumption as per the format given in Appendix 4-M of Hand Book of Procedures. Nominated Agencies will also have to follow the guidelines/ rules/procedures /directions as prescribed by RBI and DGFT. Failure to comply will render Nominated Agency Certificate liable to be cancelled in addition to action under FT (DR) Act 1992, as amended, after affording opportunity of personal hearing.

(ii) Monitoring by Gems & Jewellery Export Promotion Council:

Monitoring in respect of Nominated Agencies MMTC Ltd, Handicraft and Handlooms Exports Corporation Ltd, The State Trading Corporation Ltd, PEC Ltd, STCL Ltd, MSTC Ltd, Diamond India Limited will be by Gems & Jewellery Export Promotion Council (G&J EPC). Nominated Agencies shall file half yearly return as per format given in Appendix 4-M of Hand Book of Procedures, to the Gems & Jewellery Export Promotion Council (GJEPC), Mumbai within 15 days of every completed half year. In turn, G&J EPC shall compile the half yearly return and the figures submitted by the Nominated Agency and check the performance of the Nominated Agency. Thereafter, GJEPC shall forward the compiled half yearly returns along with its observation on performance of Nominated Agency to DGFT headquarters within one month of every completed half year. In case of delay in filing or non-submission of half yearly return within 15 days of every completed half year, GJEPC shall seek comments of defaulting Nominated Agencies. GJEPC will also forward the particulars of defaulting Nominated Agency to DGFT headquarters for taking appropriate action against defaulting Nominated Agency.

(iii) Monitoring by Regional Authorities of DGFT:

Regional Authority which has issued Nominated Agency Certificate shall monitor performance of such Certificate holders based on the half yearly returns to be filed by such agencies to the concerned Regional Authority. The Nominated Agency shall file half yearly return to Regional Authority in the month of October (for the period April to September) / April (for the period October to March) as per the format given in Appendix 4-M of Hand Book of Procedures. Regional Authority shall consolidate and verify these returns. Regional Authority will also inform DGFT which agency has not filed the return and to also take appropriate action within 30 days for suspension / cancellation of the Nominated Agency Certificate.

(c) DGFT headquarters can also review the performance of Nominated Agencies, whenever necessary.